ServiceNow (NOW) News Today

ServiceNow, Inc. (NYSE: NOW) shares increased as investors weighed positive analyst commentary and new AI-related business activity against acquisition uncertainty and valuation concerns.

• Positive Sentiment: Analyst support and AI growth: Oppenheimer said ServiceNow appears positioned for a favorable third-quarter outcome and raised its price target, while another analyst called NOW a top software pick. Expectations that AI, security and usage-based products could accelerate growth into fiscal 2027 supported the stock. Analyst Calls ServiceNow a Top Software Pick
• Positive Sentiment: New marketing collaboration: ServiceNow and Stagwell announced a three-year go-to-market partnership to modernize enterprise marketing campaigns. Stagwell plans to provide ServiceNow access to its AI-powered “The Machine” operating system, potentially expanding ServiceNow’s workflow platform into marketing operations and strengthening its AI credentials. Stagwell Closes the AI-Marketing Execution Gap with ServiceNow
• Positive Sentiment: Potentially attractive after the selloff: Coverage highlighted continued revenue growth of roughly 24%, expanding AI-powered workflows and recent product momentum. Some investors view the pullback as an opportunity ahead of third-quarter results, although the stock remains significantly below its 52-week high.
• Neutral Sentiment: Decagon acquisition rumors denied: ServiceNow said reports that it was interested in acquiring AI customer-service startup Decagon were false. The denial removes the prospect of a potentially expensive deal, but it also eliminates a possible way to accelerate ServiceNow’s customer-service AI capabilities. Jefferies maintained a buy rating and a $140 price target. ServiceNow’s Decagon Denial
• Negative Sentiment: Valuation remains a risk: Analysts noted that Salesforce currently has stronger earnings-estimate revisions, faster AI growth and a lower valuation. ServiceNow’s roughly 20%-plus growth must translate into stronger cash generation to justify its premium multiple, while recent spending on sales and engineering has pressured earnings despite higher revenue.